Regulators Are Fed Up With Food-Delivery Fees

American consumers have been forced to eat food-delivery costs sometimes nearly as big as the meals themselves. Regulators are fed up. In addition to new laws boosting compensation and benefits for delivery drivers, restaurant protections such as pandemic-related commission caps have been proliferating at the city and state levels. Consumer protections could be next. New laws have been costly for delivery players that have been struggling to generate consistent profits lately. On its third-quarter conference call, Uber , which owns and operates Uber Eats, suggested it wouldn’t absorb all of the added costs related to the passage of Proposition 22 in […]

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Forget Uber, Zoom Might Be the Long-Term Threat to Car Sales

So far, the car industry has emerged from the pandemic with just a few dents. The longer-term impact could be uglier. A total of 14.5 million passenger vehicles—a category spanning cars, sport-utility vehicles and pickup trucks—were sold in the U.S. last year, according to Wards Intelligence. That is roughly 15% lower than in 2019, but much better than seemed possible when the first bout of Covid-19 cases prompted widespread dealership closures in the spring. Fourth-quarter sales were only 2% below their level in the same period of 2019. While the fear of catching Covid-19 kept some people away from lots, much […]

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New California Law Could Spoil Some Growth for Food-Delivery Platforms

Just how valuable has restaurant selection been to delivery platforms’ growth over the past year? We could soon find out. A California bill is set to require third-party delivery platforms to have stated agreements in place with merchants to deliver food orders starting Jan. 1. The bill will effectively end the growth-strategy platforms including DoorDash and Postmates have historically employed to rapidly augment their delivery footprints. Delivery platforms will have to remove so-called unpartnered food merchants, or those with which they don’t have a stated agreement, from their apps in California. Without an agreement, a delivery platform can list a restaurant’s […]

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DoorDash, Grubhub, Others Could Face a Pared-Down Menu

Investors bidding up newly public shares of DoorDash DASH -0.53% and its competitors shouldn’t take for granted the historically fragile relationship between food-delivery platforms and the restaurants they serve. While it is unclear just how sticky eaters’ business will be on delivery apps once the coronavirus pandemic ends, their loyalty could in many cases depend upon whether their favorite restaurants stay around. That is hardly a guarantee. Delivery platforms have been essential to the survival of many restaurants this year, bringing them business even while their dining rooms have remained closed down. In addition to offering grants and relaxed delivery fees […]

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Uber Pays Up to Take Back Seat on Driverless Cars

In a sign of investors’ meager appetite for driverless-car ventures, Uber Technologies Inc. isn’t so much selling its ill-fated project as paying a rival to take it on. The ride-hailing giant said late Monday that its autonomous-driving unit ATG would be acquired by Aurora Innovation Inc., a startup with about half the staff. But this is no usual acquisition: Aurora isn’t handing over cash; in fact, it gets $400 million of extra capital from Uber as part of the deal. For the ride-hailing giant, the appeal of the transaction is that it takes driverless cars off its balance sheet. It owned […]

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DoorDash Loyalty Program Should Deliver

Consumers are eating up DoorDash’s DashPass while seemingly nibbling at offers from rivals Grubhub and Uber Eats by comparison. That could prove to be the secret sauce for DoorDash once a pandemic-driven wave of business shrinks. Other food-delivery subscriptions cost about the same and offer similar benefits. They are a good value for frequent users: A $9.99 subscription pays for itself if ordering food delivery just a few times every month. So, in a year in which demand for food delivery has soared, why aren’t all subscription… Source link

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Gig Workers Could Be Paid Partially in Stock Under SEC Proposal

WASHINGTON—Privately held online platform companies such as DoorDash and UrbanSitter could pay their workers partially in stock under a rule proposed Tuesday by the Securities and Exchange Commission. So-called gig-economy workers currently don’t qualify for SEC exemptions that allow private firms to offer equity compensation to their employees and contractors. Firms including Uber Technologies Inc.—before it went public—have lobbied the regulator in recent years to allow them to do so. The… Source link

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DoorDash Feast Won’t Last Forever

It is a good time for DoorDash to go public. Maybe too good. The Covid-19 pandemic that has curbed indoor dining at restaurants across the globe has been a boon for the food-delivery industry. DoorDash’s filing for an initial public offering Friday morning was only the latest data point. Uber last week reported that bookings for its delivery arm in the third quarter surged 134% from the same period last year—helping to offset a 53% slide in its much larger ride-share business. And even Lyft, which once prided itself for its… Source link

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Lyft and Uber Investors Head for Speed Trap

Investors are valuing ride-hailing stocks like shiny new cars. Both companies have been in a nasty accident, though. Shares of Uber Technologies and Lyft are up 217% and 125%, respectively, from their 2020 lows. Those gains accelerated following Proposition 22’s passage in California last week and this week’s promising vaccine news, but investors are paying up ahead of time for a recovery that could be maddeningly slow. On… Source link

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WSJ News Exclusive | China’s ‘Uber for Trucks’ Raising $1.7 Billion Ahead of IPO Next Year

Full Truck Alliance, a Chinese startup that provides an Uber-like service for the trucking industry, is raising about $1.7 billion to further expand its business ahead of an initial public offering next year, according to people familiar with the matter. The company, which counts Japan’s SoftBank Group Corp. and Alphabet Inc. among its many high-profile backers, is being valued at $10 billion before the capital raise, the people said. Fidelity International and private-equity firm Permira are among the investors that are planning to take part in the latest funding round, according to one of the people. Full Truck Alliance, also known […]

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